Top 10 Reasons Why Benchmarks Fail in Outsourcing Deals
Published: 23 March 2007
Benchmarks in outsourcing contracts are prone to failure, largely due to the lack of clarity about timing, funding, metrics, methodology and what actions will be taken as a result of the analysis. We provide the top reasons why benchmarks fail in outsourcing and how to avoid these failures.
Table Of Contents
- 1. Failure to Describe Benchmark Coverage Areas
- 2. Failure to Describe When the Benchmark(s) Will Be Executed
- 3. Failure to Stipulate How Often Benchmark(s) Will Be Conducted
- 4. Failure to Define What Calculated Metrics Will Be Used for Comparison
- 5. Failure to Stipulate Benchmarking Methodology and Provider Selection Criteria
- 6. Failure to Define How Peers Will Be Selected for Comparison
- 7. Failure to Identify Realistic Benchmarking Comparisons
- 8. Failure to Stipulate How Benchmarks Will Be Managed and Who Will Do the Data Collection
- 9. Failure to Define Who Will Fund the Benchmark(s)
- 10. Failure to Define How Benchmarking Results Will Be Used in the Outsourcing Deal
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